What a Market Development strategy. Fourth one is

What can you
make out from the fact that the company neither expanded nor diversified and
were obsessed with operational effectiveness for one long year after John
taking over as the CEO?

When the industry obsessed with operational
effectiveness for more than a year CEO should have looked at expanding or
diversification its strategies to grow the business.

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Best model to evaluate this is Ansoff
matrix introduce by Igor Ansoff ,where it is mostly used for evaluate growth
opportunities of an organization.

Ansoff matrix illustrate four options,  First one is Market penetration, which has  lowest risk strategy  for a company to sell existing products to existing
customers. Second is developing new products for existing customers, through a Product Development strategy. Third one
is, taking existing products to new markets using a Market Development strategy. Fourth 
one is , Diversification,
which is developing new products for new markets.

As per Ansoff matrix if any industry
belongs to Lee and Sing had profitable year needs plan new expansion to its
existing base according below option paths.

 If
the consideration on existing products for existing markets then as CEO John
could have introduce customer loyalty scheme to retain its existing customer
base. Or he could have strategy to increase group customer base by introducing
promotion campaign or expand the sales force activities.    

If 
CEO John strategically want to market development then opening new
retail outlet, new hotel , new entertainment centre or cater to different age
group or segment  in health care sector would
have been suitable option.

If 
CEO John strategically want to introduce new product in existing market
then introducing a new product category for retail sector example electronics ,
furniture , clothing or home appliance categories  for Hospitality sector examples such as new coffee
shop or new Ayurvedic  centre for
entertainment sector example new entertainment product line could be suitable
option.  

If CEO John wants new products in different
customer base by diversification then risk is high but strategically viable when
on sector fails as per certain parameters other sector might not have any
effect.

D. List out four things along with reasons, you would do as John to
turn around the company.

STEP 1

First of industry analysis needs to perform
to identify current situation of all industries are and clearly identify the growth,
growth rates, treads of each industry and competition through Porters five
force analysis.  Proper SWOT and Ansoff
analysis should be carried out for each industry.

STEP 2

Also re discover or setup vision , mission and
values statements and identifies goals for each industry. To shape up the Lee
and Sing’s organization,  needs to
analyse  above information accurately on
all their individual industries and determine how each force is affected by and
formulate organization strategies on each industry using the results of the
analysis. Once financial and operational goals are set for the next financial
year and short term and long term strategies are created to achieve these
goals. These have to discuss and agreed with industry heads.

STEP 3

Take a firm grip of the company as whole to
do the changes required. 

Best is to appoint COO with sound
leadership qualities to implement the agreed strategies. Top management board
is required to monitor implementation of strategies and cooperate governance
rules and standards need to be introduced.

STEP 4

To identifies the opportunities from Ansoff
matrix for expansions for growing industries invest on them after analysing industry
treads 

Further certain industries can take exit
entries if they foresee they don’t have a competitive advantage. This will
reduce short term borrowing to stabilize the financial position and support
growing industry expansion process.

What can you
make out from the fact that the company neither expanded nor diversified and
were obsessed with operational effectiveness for one long year after John
taking over as the CEO?

When the industry obsessed with operational
effectiveness for more than a year CEO should have looked at expanding or
diversification its strategies to grow the business.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Best model to evaluate this is Ansoff
matrix introduce by Igor Ansoff ,where it is mostly used for evaluate growth
opportunities of an organization.

Ansoff matrix illustrate four options,  First one is Market penetration, which has  lowest risk strategy  for a company to sell existing products to existing
customers. Second is developing new products for existing customers, through a Product Development strategy. Third one
is, taking existing products to new markets using a Market Development strategy. Fourth 
one is , Diversification,
which is developing new products for new markets.

As per Ansoff matrix if any industry
belongs to Lee and Sing had profitable year needs plan new expansion to its
existing base according below option paths.

 If
the consideration on existing products for existing markets then as CEO John
could have introduce customer loyalty scheme to retain its existing customer
base. Or he could have strategy to increase group customer base by introducing
promotion campaign or expand the sales force activities.    

If 
CEO John strategically want to market development then opening new
retail outlet, new hotel , new entertainment centre or cater to different age
group or segment  in health care sector would
have been suitable option.

If 
CEO John strategically want to introduce new product in existing market
then introducing a new product category for retail sector example electronics ,
furniture , clothing or home appliance categories  for Hospitality sector examples such as new coffee
shop or new Ayurvedic  centre for
entertainment sector example new entertainment product line could be suitable
option.  

If CEO John wants new products in different
customer base by diversification then risk is high but strategically viable when
on sector fails as per certain parameters other sector might not have any
effect.

D. List out four things along with reasons, you would do as John to
turn around the company.

STEP 1

First of industry analysis needs to perform
to identify current situation of all industries are and clearly identify the growth,
growth rates, treads of each industry and competition through Porters five
force analysis.  Proper SWOT and Ansoff
analysis should be carried out for each industry.

STEP 2

Also re discover or setup vision , mission and
values statements and identifies goals for each industry. To shape up the Lee
and Sing’s organization,  needs to
analyse  above information accurately on
all their individual industries and determine how each force is affected by and
formulate organization strategies on each industry using the results of the
analysis. Once financial and operational goals are set for the next financial
year and short term and long term strategies are created to achieve these
goals. These have to discuss and agreed with industry heads.

STEP 3

Take a firm grip of the company as whole to
do the changes required. 

Best is to appoint COO with sound
leadership qualities to implement the agreed strategies. Top management board
is required to monitor implementation of strategies and cooperate governance
rules and standards need to be introduced.

STEP 4

To identifies the opportunities from Ansoff
matrix for expansions for growing industries invest on them after analysing industry
treads 

Further certain industries can take exit
entries if they foresee they don’t have a competitive advantage. This will
reduce short term borrowing to stabilize the financial position and support
growing industry expansion process.

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